Updated on Aug. 3.
The average regular gas price in the U.S. as of Aug. 3 is $4.095 per gallon, according to AAA.
- One week ago: $4.110
- One month ago: $3.823
- One year ago: $3.150
Despite signing a “memorandum of understanding” on June 17 to formalize a ceasefire in a war that began in February, the U.S. and Iran have had only sporadic negotiations and have traded attacks several times.
On July 24, the U.S. paused strikes against Iran, temporarily easing concerns about oil supplies and driving Brent crude down from a July 23 high of over $100 a barrel. But strikes resumed July 30 and Aug. 1, before President Donald Trump announced talks would resume on Monday, Aug. 3.
But as of Monday, Iran denied that the two countries were in active negotiation. Oil is trading above $80 a gallon but gas prices remain elevated and the situation remains tenuous at best, and ship traffic through the Strait of Hormuz — which briefly resumed after the June 17 agreement — is again effectively frozen.
On Feb. 28, the first day of the U.S.-Israeli attacks on Iran, the national average price of a gallon of regular gas was just under $3. Any return to pre-war prices could be as far as a year away as global energy supply recovers from what has been a major disruption.
State prices for a gallon of regular range from $3.605 in Indiana to $5.659 in California, according to AAA.
The text and charts below are updated weekly.
What are gas prices like right now?
As of Aug. 3, gas prices are hovering just above a national average of $4 a gallon, well below a high of $4.50 nationally in June but still much higher than before the war began. Gas prices were below $3 in 39 states in February.
Oil prices spiked after the U.S.-Israeli attack on Iran began on Feb. 28, peaking at over $110 per barrel as oil shipments through the Strait of Hormuz were halted because of the war.
Refineries are currently producing a summer blend, which is more expensive than the winter blend.
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Gas price inflation, explained
Gas prices surged in 2021 and 2022, largely due to two economic disruptions: pandemic-related supply shocks and then Russia’s invasion of Ukraine. The combination of the two hit energy markets hard and prices never recovered to pre-pandemic levels.
Here’s what happened:
- In 2019, before the pandemic, the average per-gallon price of regular gas was $2.601, according to EIA data.
- Following Russia’s invasion of Ukraine, the national average increased before peaking at $5.016 per gallon on June 14, 2022, according to AAA.
- Until the Iran invasion, gas prices had retreated, but hadn’t returned to pre-pandemic levels.
Why gas prices remain higher than they used to be
At this time of year, seasonal factors play a considerable role in raising gas prices. A scheduled switch to summer-blend gasoline temporarily elevates prices through the warm months. Inflation, supply-chain disruptions and gas tax hikes can factor into higher prices, as well. But in the end, elevated oil prices are the main culprit.
The cost of oil typically represents more than half of the cost of a gallon of gasoline, according to the U.S. Energy Information Administration (EIA). So, a major reason gas prices have remained so high is that, until recently, oil prices were higher than they were before the pandemic hit in 2020 and Russia invaded Ukraine in 2022. That’s based on the average monthly price of West Texas Intermediate crude, which is used as the benchmark for oil prices in North America.
For much of the year to date fuel costs had been lower than they were a year ago. That has changed dramatically in the last few weeks. Here’s how gas prices compare today:
As of Aug. 3, the average regular gas price in the U.S. is $4.095 per gallon, according to AAA, which tracks gas prices.
- The price is a tick down from $4.110 a gallon a week ago.
- The price is up from $3.823 per gallon a month ago.
- A year ago, the price was $3.150 per gallon.
Oil prices are still below their June 2022 peak of almost $120 per barrel.
Average gas price per state
The average gas price per state varies widely, with the most expensive state typically costing about $2 more per gallon of regular than the least expensive state.
(Photo by Joe Raedle/Getty Images)
